The Namibian government has decided to separate incumbent Telecom Namibia and mobile operator MTC by dismantling the state holding company which owns them, according to ICT minister Joel Kaapanda.
Kaapanda told The Namibian newspaper that the…
The Namibian government has decided to separate incumbent Telecom Namibia and mobile operator MTC by dismantling the state holding company which owns them, according to ICT minister Joel Kaapanda.
Kaapanda told The Namibian newspaper that the government’s shares in MTC, the nation’s largest mobile operator, will be transferred from Namibia Post and Telecommunications Holdings (NPTH) to the ICT ministry.
NPTH has a 66% stake in MTC, while Portugal Telecom owns the remaining shares. The holding company owns 100% of Telecom Namibia.
Kaapanda was quoted as saying that the government made the decision to dismantle NPTH, which also owns Namibia Post and a properties division for its three subsidiaries, “a few months ago”. The holding company’s properties and liabilities will be distributed among the subsidiaries, he said.
MTC has been directed to buy its own headquarters for an amount yet to be determined, Kaapanda reportedly noted.
However, before this happens, there will be an independent audit to help determine how NPTH should be dismantled, the minister said. He added that he is waiting for a committee, made up of the holding company’s board members, to announce which firm will carry out the audit so an exact timeframe for the process can be given.
Kaapanda reportedly said he expects Telecom Namibia and MTC to enter a “new era” early next year.
Explaining the rationale for the separation, he was quoted saying it is “not good governance” for Telecom and MTC to be combined. He conceded that NPTH was originally created to help out Namibia Post, which was in financial trouble.
Besides MTC, Namibia is also home to TN Mobile, which is 100%-owned by Telecom Namibia.
